Jupiter Asset Management Ltd raises red flags over Godfrey Phillips India's governance standard
"We have previously raised the broader question of the group's corporate governance with the company.Jupiter does not dictate board structures to companies, but it is clear to us that a review of the group's governance would be beneficial to impro...
Kolkata: The UK-based Jupiter Asset Management Ltd, which holds 9.37% in Godfrey Phillips India, has raised red flags over company's governance standard and sought remedial actions to boost investor sentiment.
The Institutional Investor Advisory Services (IiAS), an Indian proxy firm that provides independent opinion and research on corporate governance on listed companies, has also raised similar concerns.
"We have previously raised the broader question of the group's corporate governance with the company.Jupiter does not dictate board structures to companies, but it is clear to us that a review of the group's governance would be beneficial to improve wider investor confidence, in keeping with the broader governance reform agenda already underway in India," Jupiter said in a letter to the board of Godfrey Phillips India on January 7, 2020.
One of trustees of KK Modi Family Trust, Lalit Kumar Modi has shared the letter in a tweet message. However, it cannot be verified independently on whether GPI received the letter.
Jupiter has also mentioned the IiAS report in the said letter. The IiAS in a report dated November 30, 2019 said: "GPIL needs to urgently refresh its board and induct more independent directors. GPIL’s board largely comprises family members and tenured directors. Two independent directors on the board have had a tenure of at least 30 years or more. Such long tenures are exceptionally rare."
